UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15561 / November 14, 1997
SECURITIES AND EXCHANGE COMMISSION v. VINCENT SETTEDUCATE, 97
Civ. 8472 (SAS) (S.D.N.Y.)
The Securities and Exchange Commission today filed an action in
federal court in Manhattan charging a businessman with
fraudulently obtaining $200,000 from early 1992 through 1994, by
engaging in a scheme involving fictitious prime bank
securities, and with diverting those funds to his own use.
Named in the Complaint was:
Vincent Setteducate, a/k/a Vincent Sette ("Setteducate"), a 39 year
old former resident of Eastchester, New York, and former president of
the Professional Spring Football League, Inc. ("PSFL").
The Complaint alleges that:
Setteducate, directly or indirectly, falsely represented to four
investors that he was attempting to raise $1 million to be put in
an escrow account in order to borrow against it, and with the
borrowed money, facilitate the procurement of a "purchase order"
that purportedly could be used to buy bank instruments.
Setteducate represented that investors would make a profit by
being paid a percentage of the face value of such instruments.
Setteducate represented that the required investment per investor
was $50,000 and that the return on each investment would be $2.5
million.
Setteducate, directly or indirectly, falsely represented to two
other investors that he could obtain bank "purchase orders"
representing loan funds in the amount of $100 million to be
exchanged for bank instruments described as "Prime World Bank
SBLC [stand by letters of credit]." Setteducate promised these
investors that they would earn between eight and ten million
dollars on this transaction. These representations were
materially false and misleading because such "purchase orders"
are neither issued nor accepted by banks for the purpose of
buying and selling financial instruments.
Setteducate prepared and signed contracts falsely representing
that he would use investors money to obtain the issuance of
"purchase orders" for bank instruments. Instead, in each
instance, Setteducate misappropriated the investors money for
his personal and business expenses associated with the PSFL.
In its Complaint, the Commission alleges that Setteducate violated the
antifraud provisions of the federal securities laws, Section 17(a) of
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the Securities Act of 1933 and Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission seeks
a permanent injunction against future violations of those antifraud
provisions, disgorgement of Setteducate's ill-gotten gains plus
prejudgment interest, and civil penalties.
The litigation is pending.
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